Toronto Stock Exchange March 20-26

The TSX Composite Index finished the March 20-26 trading period on an upward trend, as did other indices in North America, Asia and Europe, on the possibility of lower interest rates in the United States, higher energy prices and heightened merger and acquisition activity. The United Kingdom’s third-largest Bank, Barclays, is said to be offering more than US$80 billion for Amsterdam-based ABN Amro; in Toronto, Xstrata made a $4.6-billion friendly takeover bid for LionOre Mining International at the period’s close.

The TSX finished the period 291.14 points higher at 13,302.88, a 2.2% gain.

The price of gold rose to US$662 per oz., up $8 from the previous session and the Global Gold Index increased 5.15 points, closing at 314.37.

Copper continued its rebound, closing at US$3.13 after reclaiming the US$3 mark last week, but nickel and aluminum fell slightly. That didn’t stop the Capped Metals & Mining Index from climbing 46.19 points to 697.5. Nickel finished the week at US$20.80 per lb., after closing above US$22 in the last period and aluminum closed at US$1.24 per lb., down by about US4.

Eastern Platinum was the most active stock on the TSX with 58.4 million shares traded, closing up 5 at $2.05. The company announced it would sell 92 million shares at $1.90 apiece to raise $175 million, partly to accelerate the development of its Spitzkop platinum group metals project in South Africa and for the potential refurbishment of its smelter at the Crocodile River mine, also in South Africa.

Nickel miner LionOre was the second most active stock with trading volume of nearly 46 million shares. The stock closed at $19.29, which was an increase of $1.97 and a result of Xstrata’s $4.6-billion bid for the company on March 26, which translates to $18.50 per share. The move prompted some investors to speculate that there will be further consolidation within the sector.

Ascendant Copper shares jumped more than 56% closing at 75, making it the week’s biggest percentage gainer. The company announced that the Ecuadorian government and anti-mining groups had agreed to remove barricades and to the restoration of order to the area surrounding its Junin copper property. Roads had been blocked and the Ascendant’s demonstration farm had been seized.

First Quantum Minerals saw the greatest value growth, closing $8.92 higher at $75.00 on trading volume of nearly 2.8 million shares. During the previous period, the copper miner announced it would apply for admission to the London Stock Exchange’s Main Market, leaving AIM behind, due to its growth.

Centerra Gold shares lost the most by value, dropping $$1.02 to $10.99. The company has been in negotiations with Kyrgyz Republic government for weeks regarding its Kumtor gold project. A recently passed bill challenges the validity of Kumtor agreements.

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